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Local Edition or ig i nat ion ORIGINATION Investors Propel Detroit to Front of Housing Recovery S e c on da r y M a r k e t a na ly t ic s se r v ic i ng Even bankruptcy can't hold the recovery back in the Motor City. michigan // Despite the city's feeble economic climate, which led it to file for bankruptcy, Detroit, Michigan, is currently leading the housing recovery in our nation, according to Realtor.com. Realtor.com released its "Turnaround Towns Report" for the third quarter of this year, with comprehensive data collected from more than 800 multiple listing services (MLS) across the country. "Once the poster child for America's ailing auto industry, Detroit has turned around its housing markets," Realtor.com stated, adding, "Instead of sinking when the city of Detroit had just filed for bankruptcy, its housing markets took on a quiet resurgence." Detroit's inventory levels and age of inventory both declined significantly over the third quarter, pushing the city to the No. 1 spot on Realtor.com's list. The city's inventory dropped 24.5 percent over the year, while the age of its inventory plummeted 33.9 percent. While home prices slumped 4.8 percent over the quarter in America's bankrupt city, they are up 44.3 percent over the year as of the end of the third quarter. The key to the upturn in Detroit's housing market is investor demand, according to Realtor.com president Errol Samuelson. "We've seen reports of significant international investment in Detroit over the past several months and before the bankruptcy, so these are sophisticated investors—willing to take bigger risks and move quickly in markets that have not yet stabilized," Samuelson told TheMReport.com. Despite the positive signs, the city still suffers from high unemployment, and uncertainty 42 | The M Report surrounding the city's finances could discourage continuing investor activity. "Another factor to watch is how the city of Detroit manages its fiscal recovery over the next several months—the city council rejecting recovery plans, most recently the Barclays loan," Samuelson said. Colorado, as cities whose "appearance on the list may be a bellwether of stronger improvements in similar markets to come, as the national marketplace moves further into balance." Driving home this point, Samuelson said in a press release, "We're noticing a clear Despite the city's feeble economic climate, which led it to file for bankruptcy, Detroit, Michigan, is currently leading the housing recovery in our nation. contributed six metros to the top 10 list, and last year the state appeared seven times on the list. Prices in the Santa Barbara market are up 27.1 percent from last year, while inventory and median age of inventory are down 15.9 percent and 36.3 percent, respectively. Reno, Nevada, and Fort Lauderdale, Florida, took the third and fourth spots on the top 10 list. Other markets on the list of "turnaround towns" this quarter are West Palm Beach-Boca Raton, Florida; and Las Vegas. Envoy Mortgage Recruits 30-Year Veteran Mike Massella has been brought on to manage retail lending for the firm. texas // Envoy Mortgage, a "Uncertainty around recovery plans could cause investor sentiment to wane." While the top 10 turnaround towns in the third quarter include a few markets that suffered some of the worst of the housing crisis and ensuing recession, such as Detroit, the list also includes a few markets that have held relatively steady. In particular, Realtor.com points to Ann Arbor, Michigan; Dallas; Boston; and Boulder, split between markets that have experienced major highs and lows in recent years and those that have proved more resilient." He continued: "With the recent moderation in some of the more volatile markets, the subtler acceleration activity becomes more visible." Santa Barbara, California, at No. 2, is now the lone California market on the list previously dominated by the Golden State. Last quarter California Houston-based mortgage banking firm with retail branches across the country, announced it has hired Michael Massella as EVP of retail lending. Massella has more than 30 years' experience running production efforts for national companies and joins Envoy from Caliber Funding, where he served as SVP of wholesale lending. Before that, he was SVP for production at First Savings Mortgage and president of production for Aegis Mortgage Corporation. At Envoy, he is tasked with managing operations and production for the company's growing retail branch network, which includes more than 100 locations. "Mike Massella is an outstanding mortgage professional and the perfect choice to lead Envoy's Retail Lending Division as we continue to expand and grow our footprint across the nation," said Envoy CEO Rick Thompson. "He is renowned for his experience, success, and leadership skills with very successful organizations and is a great addition to our senior executive team."